Atari 2010 Annual Report Download - page 21

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
21
General and administrative expenses
General and administrative expenses decreased approximately 39% from €25.0 million in the prior year to €15.3 million.
These savings are primarily attributable to the continuing cost containment programs implemented across the Company
and the restructuring of our European operations.
Share-based incentive payment expense
Share-based payments were -€1.6 million versus €6.4 million in the prior year, an improvement of €8.0 million. This
improvement is primarily due to the departure of the former management team and their related share-based expenses.
This decrease was partially offset by the expenses associated with the new management team.
Restructuring expenses
Restructuring costs for the year ended March 31, 2010 amounted to €2.6 million versus €13.9 million in the previous
year. This decrease was primarily due to the prior year costs related to the Atari Transformation plan announced in May
2008 and the publishing and corporate restructuring announced in the last quarter of fiscal year 2008-2009. The current
year costs are associated with various leased facility and employee related restructures.
Impairment of goodwill
The poor performance of the publishing unit resulted in the recognition of a goodwill impairment for the Retail
Development/Publishing cash-generating unit of €40.3 million for the year ended March 31, 2009. Impairment tests
performed on March 31, 2010 did not result in any write-downs.
Operating income (loss)
There was an operating loss at the consolidated level of €24.7 million, compared with €123.2 million the previous year,
an improvement of €98.5 million. This improvement reflects the combined impact of from loss on ordinary operations of
€46.9 million as discussed above, incremental restructuring charges of €11.3 million and the prior year goodwill
impairment of €40.3 million.
OTHER INCOME STATEMENT ITEMS
(in € millions)
Operating income (loss)
(24,7)
-124,4%
(123,2)
-58,1%
98,5
-80,0%
Cost of debt (4,4) (7,7) 3,3 -42,9%
Other financial income (expense) (0,4) (4,1) 3,7 -90,2%
Income tax 2,6 3,1 -0,5 N/A
Profit (loss) from continuing operations
(26,9)
-23,2%
(131,9)
-146,1%
105,0
-79,6%
Profit (loss) from discontinued operations 3,7 (90,8) 94,5 N/A
Consolidated net income (loss)
(23,2)
-20,1%
(222,7)
-246,6%
199,5
-89,6%
Minority interests 3,8 0,8 3,0 375,0%
Net income (loss) attributable to equity holders
of the parent (19,4) -16,8% (221,9) -245,7% 202,5 -91,3%
March 31, 2010 March 31, 2009 restated* Change
*Prior fiscal year financial statements have been restated for the correction of income tax expense (€4.2 million)
Cost of debt
Cost of debt was €4.4 million, down €3.3 million or 43% as compared to the prior year. This decrease was due to lower
average debt balances in the current year as compared to the prior year. The Company used the proceeds from the
January 2010 equity raise to reduce debt levels.
Other financial income (expenses)
Other financial income (expense) decreased by €3.7 million primarily due to fluctuations in the exchange rates during the
prior fiscal year.